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Court rules cell phone operator VimpelCom be granted license -1

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(Recasts the lead, adds paragraphs 2-7)

MOSCOW, August 14 (RIA Novosti) - Moscow's Arbitration Court has upheld an appeal by VimpelCom [RTS: VIMP] against the Russian communications watchdog denying the company a license to operate in the Far East, a RIA Novosti correspondent reported from the courtroom.

The court ruled that the Federal Service for the Oversight of Communications grant the license to Russia's second-largest cell phone operator. It said earlier that it would take into account the company's suit against the State Frequency Committee for failing to implement a resolution by the Federal Anti-Monopoly Service.

The Federal Anti-Monopoly Service ordered in early 2006 that the committee reverse its decision to refuse VimpelCom's subsidiary, Vostok-Zapad Telecom, frequencies in the Far East, and reconsider the company's applications, which the committee has ignored.

VimpelCom submitted a total of 37 applications for Far East licenses, which were rejected for a reported lack of vacant frequencies in the region.

In March, an FAS committee determined that the Sate Frequency Committee had discriminated against the operator and violated competition laws. It has demanded that the committee comply with all relevant anti-monopoly laws.

The Federal Communications Agency said it would contest the FAS resolution in court.

"The State Frequency Committee decided to provide Vostok-Zapad Telecom frequencies in almost all of the Far East areas in 2001. Since then, it has failed to pass the necessary license registration procedures, even though we extended the deadline several times," agency head Andrei Beskorovainy said at the time.

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